WEBVTT - Middle East Tensions Escalate; Campus Protests During Graduations

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning.

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<v Speaker 1>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 1>stories we're following today.

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<v Speaker 2>Karen, Oil is on the rise as Middle East tensions escalate.

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<v Speaker 2>Israel's military has begun moving civilians out of Rafa. It

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<v Speaker 2>is a potential prelude to a long expected attack on

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<v Speaker 2>the Gaza city. We get more from Bloomberg senior reporter

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<v Speaker 2>Henry Mayer.

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<v Speaker 3>What we know is that the Israeli army has been

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<v Speaker 3>dropping leaflets to residents. In total, we're talking about one

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<v Speaker 3>hundred thousand people, also sending text messages, recorded voice messages

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<v Speaker 3>and through media announcements telling these people that they have

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<v Speaker 3>to evacuate from this area eastern part of Rafa. And

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<v Speaker 3>obviously this is the long, long expected, long anticipated announcement

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<v Speaker 3>by Israel which could lead to an actual offensive on

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<v Speaker 3>this city.

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<v Speaker 2>Bloomberg's Henry Mayor says the move comes after ceasefire talks

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<v Speaker 2>between Hamas and Israel in Cairo over the weekend seem

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<v Speaker 2>to stall. As we mentioned, oil is on the rise

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<v Speaker 2>and checking crud right now, West Texas Intermediate is up

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<v Speaker 2>one point one percent. Trading just shy of seventy nine

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<v Speaker 2>dollars a barrel well.

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<v Speaker 1>Nathan will Israel moves closer to an attack on RAFA.

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<v Speaker 1>Protests continue on college campuses as commencement ceremonies begin. About

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<v Speaker 1>seventy five demonstrators wave Palestinian flags and enchanted a slogans

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<v Speaker 1>at the University of Michigan ceremony in New York. Columbia

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<v Speaker 1>University has cleared out protesters ahead of its graduation on

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<v Speaker 1>May fifteenth. Mayor Eric Adams is promising to keep things

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<v Speaker 1>safe for the ceremony.

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<v Speaker 4>If the institutions decide to graduate their students to celebrate

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<v Speaker 4>a beautiful experience with their families, we'll make.

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<v Speaker 5>Sure it is done in a peaceful manner.

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<v Speaker 1>Mayor Adams spoke on ABC's This Week Heard Sundays on

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<v Speaker 1>Bloomberg Radio and Karen.

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<v Speaker 2>Members of Congress are weighing in as well. Democratic Senator

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<v Speaker 2>John Fetterman says the protesters should be demonstrating against Tomas.

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<v Speaker 6>These kind of protests haven't been helpful and ironically they

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<v Speaker 6>are actually working against peace.

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<v Speaker 2>But Democratic Congressman Rocana says the demonstrator's message deserves to

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<v Speaker 2>be heard.

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<v Speaker 7>They're telling us that over thirty thousand people have died.

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<v Speaker 7>It's time for this war to end. It's time for

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<v Speaker 7>the hostages to be released that AMAS has, and they

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<v Speaker 7>want to see leadership in America and around the world.

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<v Speaker 7>This is not the world that they want.

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<v Speaker 2>Congressman Conna and Senator Fetterman where guests on CBS's Face

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<v Speaker 2>the Nation, which can also be heard Sundays on Bloomberg Radio.

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<v Speaker 1>Well, turning to markets, now, Nathan Cash is king for

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<v Speaker 1>the Oracle of Omaha. We're in Buffett's Berkshire Hathaway's cash

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<v Speaker 1>pile increased to our record one hundred and eighty nine

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<v Speaker 1>billion dollars at the end of the first quarter. Now

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<v Speaker 1>on the equity side, Buffett trimmed his holdings of Apple.

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<v Speaker 1>Berkshire reported a one hundred and thirty five billion dollars

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<v Speaker 1>stake in the iPhone maker at the end of the

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<v Speaker 1>first quarter. That's almost forty billion dollars less than the

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<v Speaker 1>end of last year.

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<v Speaker 8>We will have Apple as our largest investment. But I

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<v Speaker 8>don't mind at all under current conditions building the cash position.

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<v Speaker 8>I think when I look at the alternative what's available

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<v Speaker 8>in the equity markets, and I look at the composition

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<v Speaker 8>of what's going on in the world. We find it

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<v Speaker 8>quite attractive.

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<v Speaker 1>Warren Buffett says, unless something changes dramatically, Apple will remain

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<v Speaker 1>it's the largest investment. Berkshire also sold its position in

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<v Speaker 1>Paramount Global at a loss.

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<v Speaker 2>And this week Karen wall Street is looking at lots

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<v Speaker 2>more earnings and fed speak. We get a preview from

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<v Speaker 2>Bloomberg's Charlie Pellett.

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<v Speaker 9>We've heard from eighty percent of S and P five

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<v Speaker 9>hundred companies. Stocks of reclaim the fifty one hundred mark

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<v Speaker 9>after a batch of bettle than expected earnings. Dan Suzuki

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<v Speaker 9>is Deputy Chief investment Officer at Richard Bernstein Advisors. I

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<v Speaker 9>think it's really earnings growth and fundamentals, kind of plain

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<v Speaker 9>old boring stuff, and that's what's improving.

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<v Speaker 2>That's what Scott long momentum. And importantly, it's not that

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<v Speaker 2>it's just improving, but it's broadening out.

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<v Speaker 9>Disney and Uber will be in focus this week, along

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<v Speaker 9>with Airbnb, Anheuser Busch, InBev, Armholdings, Occidental Petroleum, and Ubs

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<v Speaker 9>in New York. Charlie Pellet, Bloomberg Radio, All right.

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<v Speaker 1>Charlie, thanks well. Next week's US inflation print looms is

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<v Speaker 1>key for the trajectory of equities and wagers on FED

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<v Speaker 1>interest rate cuts is according to Morgan Stanley strategist Mike

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<v Speaker 1>Wilson says the price reaction on the back of the

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<v Speaker 1>release may be more important than the data itself.

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<v Speaker 2>Well, this morning, Karen, We've got plenty of c suite

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<v Speaker 2>news to get you caught up on. Bloomberg News has

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<v Speaker 2>learned Credit Swiss CEO Olrick Kerner is set to leave

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<v Speaker 2>Ubs in the coming weeks after the completion of the

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<v Speaker 2>merger of the two former Swiss rivals. Kerner had been

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<v Speaker 2>brought into CEO in July of twenty twenty two to

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<v Speaker 2>try to turn the ailing firm around. Combination of the

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<v Speaker 2>two banks holding company these means the Credit Swie chief

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<v Speaker 2>executive role will become obsolete.

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<v Speaker 5>Well.

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<v Speaker 1>Former Starbucks chief executive Howard Schultz is urging the coffee

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<v Speaker 1>chain to own its shortcomings and fixed operations following its

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<v Speaker 1>biggest sales miss in years. In a post on the LinkedIn,

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<v Speaker 1>Schultz wrote, quote, at any company that missus badly, there

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<v Speaker 1>must be contrition and renewed focus and discipline on the core.

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<v Speaker 1>Starbucks shares plummeted after sales dropped this month for the

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<v Speaker 1>first time since the early days of Covid in twenty twenty, and.

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<v Speaker 2>Karen, Twitter founder Jack Dorsey has left the board of

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<v Speaker 2>Blue Sky. That's the social networking service that he helped

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<v Speaker 2>fund and popularize a year ago. In the wake of

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<v Speaker 2>regret over the sale of Twitter to Elon Musk. Relations

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<v Speaker 2>may be warming between Dorsey and Musk. Dorsey calls the

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<v Speaker 2>company now known as x Freedom Technology.

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<v Speaker 1>And Nathan that price of Morning Joe may keep going up.

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<v Speaker 1>Robust to coffee prices have climbed to the highest level

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<v Speaker 1>in forty five years. A supply crunch has intensified for

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<v Speaker 1>the variety used in espresso, blends and instant drinks. When

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<v Speaker 1>it's time now for a look at some of the

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<v Speaker 1>other stories making news in New York and around the world,

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<v Speaker 1>and for that we're joined by Bloomberg's Michael Barr Michael,

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<v Speaker 1>Good Morning.

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<v Speaker 10>Good Morning, Karen. After multiple bomb threats at synagogues across

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<v Speaker 10>Manhattan over the weekend, Senate majority lever Chuck Schumer announced

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<v Speaker 10>the new four hundred million dollar funding package he says

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<v Speaker 10>is now available to boost security and safety at synagogues, mosques,

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<v Speaker 10>and churches.

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<v Speaker 4>The second I heard about the threats, your heart sinks.

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<v Speaker 4>You hope it's a hoax, and in this case, thank

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<v Speaker 4>god it was, but that doesn't negativize the fear, the

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<v Speaker 4>trauma when synagogues and other houses of worship have to

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<v Speaker 4>be evacuated.

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<v Speaker 10>Three New York City synagogues and the Brooklyn Museum received

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<v Speaker 10>bomb threats. Former President Donald Trump's criminal hush money trying

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<v Speaker 10>resumes today in New York. Prosecutors alleged Trump tried to

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<v Speaker 10>suppress negative news coverage to influence the outcome of the

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<v Speaker 10>twenty sixteen election. Hope Hicks will probably return to the

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<v Speaker 10>witness stand today for further cross examination. House Minority Leader

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<v Speaker 10>Hakim Jeffries says Democrats effectively have been governing as if

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<v Speaker 10>we were in the majority. After Republican OWL Speaker Mike

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<v Speaker 10>Johnson worked with Democrats to pass a foreign aid bill,

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<v Speaker 10>GOP Representative Marjorie Taylor Green announced plans to remove Johnson

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<v Speaker 10>as speaker. Jeffries says our view would traditionally be let

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<v Speaker 10>the other side work out its own mess, but the

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<v Speaker 10>New York Democrat went on to say, when that mess

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<v Speaker 10>starts to impact the ability to do the job on

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<v Speaker 10>behalf of the American people, then the responsible thing at

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<v Speaker 10>that moment might be for us to make clear that

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<v Speaker 10>we will not allow the extremists to throw the Congress

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<v Speaker 10>and the country in the chaos.

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<v Speaker 11>It's a difficult situation on the other side of the

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<v Speaker 11>aisle because many of my Republican colleagues are more interested

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<v Speaker 11>in creating chaos, dysfunction, and extremism for what purpose. That's

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<v Speaker 11>a good question that has to be asked of them.

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<v Speaker 10>Jeffrey spoke on CBS's sixty Minutes, which can be heard

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<v Speaker 10>Sunday nights. I'm Bloomberg. Ninety nine to one in Washington.

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<v Speaker 10>Interstate ninety five in Norwalk, Connecticut fully reopened the traffic

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<v Speaker 10>in both the directions after a gasoline tanker truck burst

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<v Speaker 10>into flames during a three vehicle crash last week. The

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<v Speaker 10>fire damaged and overpass bridge, causing a complete shutdown. Global

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<v Speaker 10>News twenty four hours a day and whenever you want

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<v Speaker 10>it with the Bloomberg News Now. I'm Michael Barr, and

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<v Speaker 10>this is Bloomberg.

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<v Speaker 1>Karen sor Ry, Michael Barry, thank you time now for

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<v Speaker 1>the Bloomberg Sports Update with John stash Hour.

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<v Speaker 5>John, good morning, Good morning, Karen.

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<v Speaker 6>Thirty years ago, the Rangers won the President's Trophy, won

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<v Speaker 6>their first seven playoff games.

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<v Speaker 5>And then won the Stanley Cup.

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<v Speaker 6>This Rangers team also best regular season and they have

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<v Speaker 6>now started the playoffs five and zero.

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<v Speaker 5>We'll see about the Cup. Long way to go for that.

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<v Speaker 6>But Game one at the Guarden with Carolina two early

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<v Speaker 6>goals for me Becazavana Jet and the first period still

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<v Speaker 6>wasn't over.

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<v Speaker 12>Right point Paderen were to the head for Kriider in

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<v Speaker 12>the middle, chut Check to Savanna Jeck tut Chick scores

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<v Speaker 12>fit to tout Check hit top power play goal as

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<v Speaker 12>a Rangers lead three to one.

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<v Speaker 6>Sam roses with the call WEPN. Rangers hung on beight

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<v Speaker 6>the Hurricanes four to three. The first round ended with

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<v Speaker 6>Dallas's two to one Game seven win over Vegas. The

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<v Speaker 6>defending Cup champs Blue two to nothing series lead. NBA

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<v Speaker 6>first Round is now over Cleveland b Orlando one O

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<v Speaker 6>six ninety four.

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<v Speaker 5>Cans were down eleven at the half.

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<v Speaker 6>Donovan Mitchell, who scored fifty points in the game six loss,

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<v Speaker 6>scored thirty nine in the Game seven win. Nixon Pacers

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<v Speaker 6>start their Round two series tonight. MSG Indiana won the

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<v Speaker 6>regular season series two to one. Both the wins were

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<v Speaker 6>by fourteen points. Sparse crowd at the stadium rainey Da

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<v Speaker 6>game was shortened. Yankees beat Detroit five to two. Juan

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<v Speaker 6>Soto once again the Big hit three run, go ahead

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<v Speaker 6>double seventh and Ain't Aaron Judge homer in the first

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<v Speaker 6>Yanks sweep the series. Met Scott swept at Tampa. Bay

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<v Speaker 6>Rays walked it off bottom of the tenth, one, seven, sixth.

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<v Speaker 6>They stole seven bases they wanted on Johnny de Luca

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<v Speaker 6>two run triple after Randy or Rose Arena tied the

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<v Speaker 6>game with a ninth inning two out homer off Edwin

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<v Speaker 6>Diaz his first blown save. Red Sox won nine to

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<v Speaker 6>two at Minnesota and in the Twins twelve game win streak.

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<v Speaker 6>Giants last night lost five fourth Philadelphia. The Nationals beat.

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<v Speaker 5>Toronto eleven nine.

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<v Speaker 6>Dodgers beat the Brave Showy how Tony had four hits,

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<v Speaker 6>two home runs. Taylor Pendrith took to Nelson Golf in

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<v Speaker 6>Dallas his first PGA win.

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<v Speaker 5>John stash I went Bloomberg Sports Kenny Nathan.

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<v Speaker 13>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 13>and around the world on Bloomberg dot Com. And the

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<v Speaker 13>Bloomberg Business app. This is Bloomberg day Break. Good morning,

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<v Speaker 13>I'm Nathan Hager. We are getting ready for another busy

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<v Speaker 13>week for earning. It's pretty light on the economic data

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<v Speaker 13>calendar this week, but there is a raft of FED

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<v Speaker 13>speakers that could keep investors busy as well.

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<v Speaker 2>So let's get you set for this trading week ahead.

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<v Speaker 2>We are joined now by Dennis Gartman, the chairman of

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<v Speaker 2>the University of Akron and Doowment Investment Committee and the

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<v Speaker 2>former publisher of the Gartment Letter. Dennis, Good morning, great

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<v Speaker 2>to speak with you. I wonder if you think investors

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<v Speaker 2>should be pricing geopolitical risk back into the market given

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<v Speaker 2>the reports we're hearing about civilians getting cleared out of

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<v Speaker 2>the southern Gaza city of Rafa and now Russian President

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<v Speaker 2>Vladimir Putin ordering tactical nuclear drills the day before is inauguration.

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<v Speaker 14>Very scary times. I'm afraid, and yes, I think you

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<v Speaker 14>have to be pricing in geopolitical risk on a rather

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<v Speaker 14>swift basis. There was talk over the weekend or ahead

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<v Speaker 14>of the weekend that there would be a ceasefire talks,

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<v Speaker 14>but they seem to have broken down in regarding Gaza

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<v Speaker 14>and now we have gold breaking out to the upside.

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<v Speaker 14>I think you have to be a long of the

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<v Speaker 14>gold market, no question about that. And I think you

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<v Speaker 14>have price in geopolitical risks. So that's the major topic

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<v Speaker 14>of the day. We'll be talking later this week about

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<v Speaker 14>the Bank of England, but for right now, geopolitical risk

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<v Speaker 14>is the topic to jure, no question about that.

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<v Speaker 2>What are you looking at in terms of a price

0:12:14.600 --> 0:12:15.520
<v Speaker 2>level for gold?

0:12:15.600 --> 0:12:15.959
<v Speaker 13>Right now?

0:12:15.960 --> 0:12:19.000
<v Speaker 2>It's trading around twenty three hundred at the moment. There

0:12:19.000 --> 0:12:22.000
<v Speaker 2>had been talking the past about three thousand as a

0:12:22.120 --> 0:12:25.240
<v Speaker 2>potential gold level. Is that something you're looking at.

0:12:25.720 --> 0:12:27.679
<v Speaker 14>I've been very bullish of gold for quite some period

0:12:27.720 --> 0:12:29.360
<v Speaker 14>of time. Now, I'm not a gold bug. There are

0:12:29.360 --> 0:12:31.040
<v Speaker 14>times when you are to be long of gold, there

0:12:31.080 --> 0:12:33.200
<v Speaker 14>are times when you to be short of gold. There

0:12:33.200 --> 0:12:34.959
<v Speaker 14>are times when you are to be neutral of gold.

0:12:35.000 --> 0:12:36.920
<v Speaker 14>But this is a time you are to be bullish

0:12:36.960 --> 0:12:39.320
<v Speaker 14>of gold, no question about it. And I think that

0:12:39.360 --> 0:12:43.000
<v Speaker 14>one should be bullish of gold, predominantly in non US

0:12:43.120 --> 0:12:46.360
<v Speaker 14>dollar terms, and particularly in terms of the dollar yen.

0:12:46.920 --> 0:12:49.800
<v Speaker 14>I think we've got spot gold now going I think

0:12:50.200 --> 0:12:52.960
<v Speaker 14>eventually to three thousand dollars an ounce, and I think

0:12:53.000 --> 0:12:56.760
<v Speaker 14>that we've had intervention to stem the weakness of the

0:12:56.800 --> 0:12:59.600
<v Speaker 14>dollar yen. But I think that's going to be proved

0:12:59.600 --> 0:13:01.920
<v Speaker 14>to be fallacious. I've learned it when I traded for

0:13:01.960 --> 0:13:04.480
<v Speaker 14>an exchange back in the nineteen seventies. The one thing

0:13:04.520 --> 0:13:07.360
<v Speaker 14>I learned was that intervention to support a currency is

0:13:07.440 --> 0:13:12.960
<v Speaker 14>usually usually fails. Intervention two weekend currency usually is. It works.

0:13:13.320 --> 0:13:15.400
<v Speaker 14>The fact that the Bank of Japan came in two

0:13:15.400 --> 0:13:18.640
<v Speaker 14>weeks ago to intervene against the dollar yen at one sixty,

0:13:18.720 --> 0:13:20.559
<v Speaker 14>I think the next time we trade through one sixty,

0:13:20.600 --> 0:13:22.840
<v Speaker 14>we're going to two hundred end of the dollar, maybe

0:13:22.840 --> 0:13:25.000
<v Speaker 14>two d twenty five end of the dollar, which is

0:13:25.000 --> 0:13:27.280
<v Speaker 14>where we traded dollar yen when I first began trading

0:13:27.320 --> 0:13:30.040
<v Speaker 14>yen back in the nineteen seventies. So I think the

0:13:30.120 --> 0:13:33.079
<v Speaker 14>dollar yen and you should be short of the end,

0:13:33.200 --> 0:13:35.360
<v Speaker 14>long of dollars, you should be long of gold, short

0:13:35.400 --> 0:13:38.560
<v Speaker 14>of dollars. That leaves you long of gold in yen terms.

0:13:38.800 --> 0:13:42.640
<v Speaker 14>And we're now trading about thirty six three hundred and

0:13:42.679 --> 0:13:44.439
<v Speaker 14>sixty nine thousand the end of the dollar. I think

0:13:44.440 --> 0:13:46.120
<v Speaker 14>it's going to six hundred thousand the end of the

0:13:46.120 --> 0:13:47.559
<v Speaker 14>dollar over the course of the next two or three

0:13:47.600 --> 0:13:48.319
<v Speaker 14>years now.

0:13:48.360 --> 0:13:51.200
<v Speaker 2>We haven't heard any confirmation from the Japanese government that

0:13:51.240 --> 0:13:55.040
<v Speaker 2>there was intervention last week, but we've seen some comparisons

0:13:55.080 --> 0:13:57.800
<v Speaker 2>of Bank of Japan accounts that indicated are you thinking

0:13:57.840 --> 0:14:00.319
<v Speaker 2>that the Bank of Japan could intervene once again?

0:14:01.040 --> 0:14:03.320
<v Speaker 14>They'll try to stop it at one sixty one more time,

0:14:03.640 --> 0:14:05.199
<v Speaker 14>but I think they'll give up at that point, and

0:14:05.240 --> 0:14:07.920
<v Speaker 14>once we trade one sixty ten and go through the

0:14:07.960 --> 0:14:10.840
<v Speaker 14>one sixty level, that that frees you up to take

0:14:10.920 --> 0:14:13.680
<v Speaker 14>to go to dramatically new lower levels for the end,

0:14:13.720 --> 0:14:16.319
<v Speaker 14>new higher levels for the dollars. So I think they'll

0:14:16.320 --> 0:14:19.160
<v Speaker 14>be intervening one more time to prove that they're there.

0:14:19.400 --> 0:14:22.120
<v Speaker 14>But as I said, if I've learned anything in fifty

0:14:22.200 --> 0:14:25.760
<v Speaker 14>years or trading, it's that intervention to support a currency

0:14:25.880 --> 0:14:29.560
<v Speaker 14>usually fails. Intervention to weakener currency almost always succeeds. They'll

0:14:29.600 --> 0:14:32.400
<v Speaker 14>try once more to stem the ends of weakness, but

0:14:32.800 --> 0:14:36.600
<v Speaker 14>they will fail very badly at that attempt, No question about.

0:14:36.400 --> 0:14:39.160
<v Speaker 2>It now, last minute or so. Dennis is the chairman

0:14:39.200 --> 0:14:42.000
<v Speaker 2>of a university endowment. I wonder what you make of

0:14:42.080 --> 0:14:46.880
<v Speaker 2>these growing campus protests and calls for universities to divest

0:14:46.920 --> 0:14:50.520
<v Speaker 2>from Israel. Given what's going on in Gaza, your comments

0:14:50.560 --> 0:14:50.880
<v Speaker 2>on that.

0:14:51.360 --> 0:14:53.160
<v Speaker 14>As long as I remain the chairman of the University

0:14:53.160 --> 0:14:57.000
<v Speaker 14>of Acrons Endowment, we will avoid doing anything that protesters

0:14:57.000 --> 0:15:00.160
<v Speaker 14>demand of us. And I think that we should pay

0:15:00.200 --> 0:15:03.440
<v Speaker 14>attention to what Ben Sasse, the President of the University

0:15:03.440 --> 0:15:06.400
<v Speaker 14>of Florida said, adults are back in the room, and

0:15:07.200 --> 0:15:09.920
<v Speaker 14>we need to prove that we are stronger than the protesters.

0:15:09.960 --> 0:15:12.720
<v Speaker 14>So free speech is important, but free speech that goes

0:15:12.720 --> 0:15:15.520
<v Speaker 14>across the line should be avoided at all costs. And

0:15:15.800 --> 0:15:17.440
<v Speaker 14>like I said, as long as I remaina chairman of

0:15:17.440 --> 0:15:20.600
<v Speaker 14>the University of Akrons Endowment, I will argue against disinvestment,

0:15:20.680 --> 0:15:21.560
<v Speaker 14>no question about that.

0:15:22.040 --> 0:15:25.840
<v Speaker 2>And just quickly, is it possible to divest from Israeli

0:15:25.880 --> 0:15:29.440
<v Speaker 2>interests in terms of a university endowment?

0:15:30.240 --> 0:15:34.720
<v Speaker 14>I think it's nigh upon impossible. The far reaches of

0:15:35.160 --> 0:15:39.520
<v Speaker 14>international capitalism make it difficult to divest. I think it's

0:15:39.520 --> 0:15:44.120
<v Speaker 14>a and ill advised and naive expectation on the part

0:15:44.120 --> 0:15:45.640
<v Speaker 14>of the protesters. It just won't happen.

0:15:45.840 --> 0:15:48.760
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